Rev. & Tax. Code, § 18001 · Chapter 12. Credit for Taxes Paid
Rev. & Tax. Code, § 18001
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Subject to the following conditions, residents shall be allowed a credit against the “net tax” (as defined by Section 17039) for net income taxes imposed by and paid to another state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income taxable under this part:
(1) The credit shall be allowed only for taxes paid to the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income derived from sources within that state which is taxable under its laws irrespective of the residence or domicile of the recipient.
This paragraph shall not apply to residents to whom subdivision (b) of Section 17014 applies.
(2) The credit shall not be allowed if the other state allows residents of this state a credit against the taxes imposed by that state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) for “net tax” (as defined by Section 17039) paid or payable under this part.
(3) The credit shall not exceed the proportion of the “net tax” (as defined by Section 17039) payable under this part as the income subject to tax in the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) and also taxable under this part bears to the taxpayer’s entire income upon which the “net tax” (as defined by Section 17039) is imposed by this part.
(4) No credit shall be allowed under this section for any tax imposed by Section 17062.
(b) For purposes of this section, the amount of “net income taxes” paid to another state shall include the taxpayer’s pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued, which were paid by an S corporation, as provided by Section 18006.
(c) For purposes of this section, “income derived from sources within that state” shall be determined by applying the nonresident sourcing rules for determining income from sources within this state, as specified in Chapter 11 (commencing with Section 17951), and the regulations thereunder.
Notes and commentary — not statutory text
History
Amended by Stats. 2002, Ch. 374, Sec. 3. Effective January 1, 2003.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=18001.
- Text hash
- sha256 44088db95d46171ab5a40e0c173917104ddbbc3c8f4f3afa165b91a841d5a3ab
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Revenue and Taxation Code
- Rev. & Tax. Code, § 17014Printed as Section 17014
- Rev. & Tax. Code, § 17039Printed as Section 17039
- Rev. & Tax. Code, § 17062Printed as Section 17062
- Rev. & Tax. Code, div. 2, pt. 10, ch. 11Gross Income of NonresidentsPrinted as Chapter 11 (commencing with Section 17951)
- Rev. & Tax. Code, § 18006Printed as Section 18006
Cited by 6 provisions
Provisions in this library whose text cites Rev. & Tax. Code, § 18001. Each shows the citation as that text prints it.
Revenue and Taxation Code
- Rev. & Tax. Code, § 17052.10Printed as Sections 18001 and 18002
- Rev. & Tax. Code, § 17052.11Printed as Sections 18001 and 18002
- Rev. & Tax. Code, § 18004Printed as Sections 18001 and 18002
- Rev. & Tax. Code, § 18006Printed as Section 18001
- Rev. & Tax. Code, § 19136.5Printed as Section 18001
- Rev. & Tax. Code, § 19311.5Printed as Section 18001, 18002, 18003, 18004, 18005, or 18006
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.